Jan 17 2020
Yen is no longer a "safe currency" = Yu Sasaki
The dollar / yen JPY = EBS market stayed within the 7.6% range during 2019 . This is the minimum since 1980, and has been within 10% for the past three years, almost within the range of 105 yen to 115 yen.
Fluctuations in the exchange rate are caused by changes in the two currencies. However, in recent years, the range of the dollar / yen market has been narrow:
- The movement of the yen has become smaller
- The movement of the yen and the US dollar The two factors, which are no longer, are affecting.
The annual rate of change (absolute value) of the nominal effective rate of the yen has averaged 3.8% over the last three years, the lowest since 1997, which dates back to the data. The reason why the fluctuation range of the yen has become smaller may be simply because the yen no longer behaves as a "safe currency" as before.
Yen is often called a "safe currency" because it is bought when uncertainty increases. However, the reason that the yen did this in the first place was that it was not selected and bought as a "safe currency", but that the originally sold yen was being repurchased.